Upon formation, the 23rd Division was almost immediately sent to the Northern frontier of Manchukuo, where it replaced a cavalry brigade on garrison duties in Hailar (in what is now part of Inner Mongolia).
Notably, the only divisional sub-unit not suffering crippling casualties was the reconnaissance regiment, which was able to break out of the Soviet encirclement.
With the situation in the Philippines against the United States in the Pacific War becoming ever more precarious, the 23rd Division was reassigned to Luzon.
While en route, under control of the Japanese 14th Area Army, it suffered heavy losses when Convoy HI-81 was attacked in mid-November 1944.
The 23rd Division ceased to exist after the Battle of Luzon, and survivors had retreated to Bokod by the time of the surrender of Japan 15 August 1945.